understanding vdm group, page-6

Hello Black Russian,

The risks to keep an eye on are losing contract announcements. Argyle Diamond mine contract reduction being one of them.

The recent $32Million contract that they won for the Cocos Island was awarded by Australian Government, so it is a very solid piece of work. If they can keep getting these type of contracts then it should ride through current storm.

Another risk to watch out for is property development business that they are in slowing down and possible write off of current investments (if you hold long enough you will see the upside when these properties are sold). I was a bit concerned about the units built in Mandurah. Spoke with local in WA and Mandurah property market is very exclusive so should not have a problem in selling even in bad times.

All weighed up need to keep an eye on it to ensure that they are keeping contracts. They have reported when there has been trouble for specific contracts - Argyle (RIO).

I am sure with the Leighton issues surfacing there may be some sentiment issues with VMG and others in the sector. Will keep an eye out for any issues.

Best of Luck
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